investment

NPS Withdrawal Rules: Complete Guide

NPS partial withdrawal, annuity, and maturity options - understand withdrawal rules.

GetYourCA Team
14 January 2026·Updated 14 January 20261 min read12.5K views
"nps""withdrawal""annuity""pension"

NPS Withdrawal Options#

At Maturity (Age 60+)#

  • 60% can be withdrawn tax-free
  • 40% must buy annuity

Premature Withdrawal#

  • Allowed after 5 years
  • Less than 50% of corpus
  • Taxable as per slab

Partial Withdrawal#

  • Once in 3 years
  • Up to 25% of contributions
  • Not taxable

Annuity Options#

  1. Life Annuity - Monthly pension
  2. Joint Life - Spouse gets pension
  3. Guaranteed - Fixed period

Tax Treatment#

  • Lump sum: Tax-free (within 60%)
  • Annuity: Taxed as income

Need Help With Your Tax Filing?

Our expert CAs can help you file your ITR accurately, claim maximum deductions, and ensure compliance. Get started in minutes.

File ITR with ExpertTry Tax Calculator

Was this article helpful?

GT

GetYourCA Team

Tax Expert

10+ years experience
View all articles by this author →

Disclaimer

We have taken utmost care to research and write this article for your information. However, tax laws are complex and subject to frequent changes. This article is for general guidance only and should not be considered professional advice. Individual circumstances vary significantly — what works for one person may not apply to another.

Before making any tax-related decisions, we strongly recommend consulting with a qualified Chartered Accountant or tax professional who can assess your specific situation. We do not accept any liability for decisions made based on this information.

Need help with your taxes?

Talk to our expert CAs

Get Started